History
Sound Recording in the Digital Age
Defining Features of Sound Recording
Organization of the Record Industry
Ownership in the Recording Industry
Producing Records
Economics
Feedback
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Sound RecordingChapter 8© 2009, The McGraw-Hill Companies, Inc. All rights reserved.1CHAPTER OUTLINEHistorySound Recording in the Digital Age Defining Features of Sound RecordingOrganization of the Record IndustryOwnership in the Recording IndustryProducing RecordsEconomicsFeedback 2HISTORYPhonograph: Thomas EdisonFor dictationGraphophone: Bell & TaintherGramophone: BerlinerNickelodeons3RivalryVictrola: BerlinerDisc player designed to look like furniture“His Master’s Voice”By 1914 record players were commonNational dance crazeJazz Age4The Impact of Radio on the Recording IndustryBy 1924, radio cut into sales of record playersSales down 50%Record companies improved quality of recordingsRecord companies marketed combined radio-phonographsRCA & Victor merged in 19295The Great DepressionJukebox: coin-operated music playerInstalled in bars, diners, drugstoresBoosted record sales about 500% by 19396World War II and AfterShellac declared defense commodityMusicians strike, 1942-1944Capital Records sent free records to radio stationsColumbia introduced 33-1/3 rpm LP (albums)RCA introduced 45 rpm (singles)Stereo players introduced in 1950sTV affected both radio and recording industriesPlaying Top 40 songs became popular7The Coming of Rock and RollRock’s roots in black rhythm and blues, commercial white popular music, country & western, jazzPopular new singers: Elvis Presley, Bill Haley, Buddy Holly, Little Richard, Chuck Berry, etc.8Rock Goes CommercialMost original rock stars left scene by 1959Payola scandalsEarly 1960 industry cleaned up its imageWholesome, clean-cut American singers9The British InvasionThe Beatles, 1964Rolling Stones, Animals, other British groupsAmerican GenresFolkSoul10TransitionsLate 1960s into 1970sSocial experimentation and cultural transitionCountry rockRock operaBlend jazz, rock, classicalHeavy metal11Industry Trends: 1970-1990sDiscoMichael Jackson’s ThrillerCD format dominated in 1990s12The Contemporary Sound Recording IndustryiPod and other portable MP3 playersBy 2007, a billion downloads from iTunesSlowdown in sales, increase in downloadingRetail arm of industry has problemsIndustry fights against illegal file-sharingRecording industry more consolidated than everEncourages predictable and formulaic music13SOUND RECORDING IN THE DIGITAL AGEDigital technology makes the recording industry vulnerable. Industry was not prepared for the digital ageIllegal file-sharing changed music industry forever14The Rise of the iPodiPod led to varied developmentsNew business modelNew cottage industry (iPod accessories)Cultural impact (iPods at clubs)iPod jacking (listen to others’ music)Podcasts (downloadable programs)New radio format (“Jack FM” or “Dave FM”)15The Decline of the CDRecord companies packaged collections of songs (albums) on CDsPeople want to buy only the songs they likeAbandoned album formatCD sales declining since 2000Legal downloads generate revenueNot as much as lost from decreased CD sales16New ProductsRecording industry developing symbiotic relationship with cell phone industry17Mobile MusiciPod allows people to take music with them (continuing Sony Walkman tradition)MP3-equipped cell phonesMusic industry charges wireless providers more than it charges online services18User-Generated ContentArtists produce content and post on social networking sitesImportant to industry and individualsArtists, wireless providers, recording industry are all interested in using these sites effectively19DEFINING FEATURES OF SOUND RECORDINGCultural force: characterizing social groups, defining movements and trends – helps shape modern cultureInternationalUnique blend of business and talent20ORGANIZATION OF THE RECORD INDUSTRYThe recording industry can be divided into four major segments.21TalentSingers, musicians, songwriters, arrangers, lyricistsTry to break in to industry by performing at local clubs, or posting videos on sites such as YouTube, Facebook, MySpace22ProductionRecording the songs at the recording studios, using elaborate multi tracking equipmentWhen singles/albums are released, label beginsPromotion, advertising, merchandising, packagingFour major firms dominate the industry, though many small companies exist23DistributionDirect retailRack jobbersOne-stopsDirect consumer salesOnline salesDirect download24RetailTraditional record stores facing stiff competitionMass market stores (Wal-Mart, Target)2006: 65% of CD and tape salesOnline music sitesSome electronic retailers are starting music download businesses25OWNERSHIP IN THE RECORDING INDUSTRYRecording industry is one of the most concentrated of all media industriesFour firms account for 85% of all salesUniversal Music Group, Warner Music, Sony BMG, EMIThese are multinational conglomerates with interests in many different industries26PRODUCING RECORDSArtists and repertoire (A&R)Sales and distributionAdvertising and merchandisingPromotionBusinessPublicityArtist development27Making a RecordingArtists must gain attention of the industryProduce demoPost videosContact A&R departmentIf signed, go to recording studioMultitrack recordingPlayers need not be present at same timeAfter recording, mix down to two tracks (stereo)28ECONOMICSEconomic issues are of concern to the industry as a whole and to individual musical acts29Economic TrendsProfits declining since 2000File-sharing programs became popularLegal downloading services are booming30Rock Performers: The Bottom LineRoyalty rates CDs: roughly 9% to 20% (for superstars)Downloads: royalty rates run about 9%Artist income sourcesRoyaltiesPersonal appearances, overseas sales, merchandisingMust pay all expenses from incomeVery few acts generate large sumsOnly about 10% of new recordings are profitable31FEEDBACKFeedback in the sound recording industry has been concerned more with sales and exposure than with audience composition32Billboard ChartsBillboard magazine prepares weekly ratings charts based on sales and exposureNielsen SoundScan provides sales figuresNielsen Broadcast Data Systems provides exposureRadio stations monitor Billboard to see what they should be playing33Sound-Recording AudiencesDemographic profiles not common; industry not supported by advertisingPeople over 30 account for 55% of salesSpending by people 19 and under declined to 21%34